thank you for being with us come have a great weekend. good night from new york. neil: after the debate, cold someone, anyone, give these guys a clue? not a word about our fast sinking ship. december 31, it all comes crashing down. all of those bush tax cuts that expire, all of those automatic spending cuts, one was too busy smiling like he was trying to close a deal on a used chevy, and the other frantically writing notes -- i have no idea what that was about. another debate leaves with no

debate here. forget who won and lost. i think ultimately we all are worse off. welcome, everybody come i am neil cavuto. we just found out today thatwe have another trillion dollar deficit the fourth year running. it could've been worse. we also found out that the federal government bailout program in the wake of the 2008 financial crisis was $24 billion. alas, that is down from $32 billion. by my count on both counts, we are still down for the count. crazy me. i want a lot of answers to all of these loony financial questions. how will we avoid this looming train looming train wreck? what we do to ease ourselves back from this financial cliff? not a word on any of this from the vice president or the guy

that wants to be vice president. no mention of the great unmentionable and what could single-handedly trigger another recession. that is why tomorrow we want answers. allow me to break from ll things convention and all things hot air and focus on something that is pathetic. washington's ongoing difference to a calamity. it could cost millions of jobs and high taxes on millions of poor families. the issue isn't whether or not i think this is a big dea, my friends. it is why this late in the game neither party is talking about it. steve moore says the caulk is indeed taking. a three to $4 billion being added to the that everyday.

get ready, this could be worse. it was the birth of the mall? i don't think either is the fairest of them all. what do you think? >> i want to highlight something. despite all of these other clips that we are talking about, they're there are only really three questions. there is the defense and in cliff and the domestic sequester quick. but let's remember one other thing. there is a big cost of doing nothing. you know, just allowed these deficits to go on through a trillion dollars a year. i happen to think that by far the most dangerous thing in terms of the immediate future is to allow those tax rates go up. i agree with yo by the way, the congressional budget office, if we let those tax rates go up, starting on january 1, higher capital gins, dividends, business taxes, estate taxes go up, too, if, if you believe it back to tumble into a double dip recession.

and that would be extremely painful. i don't think the spending cuts are that big of a problem, really. i actually think it is about time that we start cutting these programs across the board. >> actually agree with you on that car. first of all, you and i know that customs is a misnomer here. having said that, how o they avoid this, and what can they do?

>> i do not believe that this fiscal cliff will happen. i think members of both parties are going to blink and turn the sequester off. neil: you and i know that that was their backbone. their own plan is a mockery of the market and they will paint on that. >> you know that better than i do. neil: actually i do not, but that's what i think. >> by the way, it means that all of the hullabaloo, remember, two years ago, the debt ceiling -- until we get some of these ironclad cuts come i don't think those cuts are going to happen. neil: somebody think they do? do they tend everything for six months? i was hearing a lot of that before. >> they put it off and they put also more it off somewhere, and then they agree to something later. but how ma times have we heard that? 1000 times in the last 20 years.

but i think that the other issue, obviously, is that tax quest. and that depends on the outcome of the election. if barack obama wins, he will then have a voter mandate let those rates go up. if mitt romney wins, i think he will turn the task with off, too. butyou asked about this. they say they won't do title metaprograms from a can agree on tax reform. we are right back where we started three years ago he won all right, steve moore, thank you so much. >> i wish i had better solutions, but this is what happens in washington. [talking over each other] [talking over each other] neil: you can't say that i don't know. i always figured if i have to come and try not to do that. steve moor always good to have you. i want to go to the former verizon wireless ceo who has

been worried about this for a lot of his corporate brethren. denny, they don't reach an accord, by december 31, then what happens remapped. >> let's take a look at this. he just said it. we have a massive tax increase, a repeal of the bush tax cuts, have the social security tax that is reenacted for employees of 2%. we have the over trillion dollar spending issue. it is about 5% of our economy. neil: what you think the market is doing? >> i am very concerned about what the market is doing. when you look at stock prices today, the fiscal cliff is not yet built. neil: they don't even see that as a possibility. the closer we get, the more they start getting antsy and. >> again, i'm very concerned about that. antsy for sure. and i don't think that we are going to get a lution to this

thing, certainly before the end of the year. neil: so you don't even buy the six-month extension think? >> when we can stop looking at this thing in bits and pieces. this is not what leaders do. leaders are decisive. il: when it coms to the sequestration cuts that they agree to, they are trying to change the rules on that. >> i cannot disagree with you there, neil. but i would ask your audienceto think back to when barack obama was running for president.

he ran as a uniter. he was going to make this happen, get things done. the fact of the matterris, it did not happen, he is the great divider at this point. neil: as a ceo, someone who knows what it's like to sit down at a table nd debated someone -- i don't know if you ever did so like they did last night, but do you think they can hammer out something that will leave both parties happy? because republicans will never budge on a tax increase for the upper income. and democrats they won't scale and growth of entitlement. so there we are. >> of course they can hammer out a deal. it takes negotiation. it takes leadership. neil: both sides argue that they are going to have a convergence after the election. because that is there, the heat is over, it is it's time to let the cooler heads prevail.

>> you know what, that's unfortunate, because we are on the brink of another recession here. and if weedon't resolve this fiscal cliff, that is exactly where we're going. >> it is also why we are not seeing the consumer spending we need to see. everybody says, how we resolve this? where we go with this? businesses and consumers are waiting to see what happened. neil: we have two months to hold our breath. that is a longtime. >> that is a long time. neil: thank you very much.

all right, the mainstream media might be telling you this is not a big problem. even the president and vice president at don't think it's a big problem. but we are talking about it. when it comes to laying it all out, we will. by the way, we have not taken our eye off the campaign. from 8:00 p.m. to midnight next tuesday, and the final one in boca raton. meanwhile, forget the smirks. the taxpaying, the thing with the rich, i think joe biden might have wandered off script. or was that joe sending a signal? this is sending the world a pretty bad signal. these guys just winning the nobel peace prize. not the writers, but the very system of government that has no sponsor these writers.

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>> no family making less than $250,000 per year will see any form of tax increase to $250,000 or $250,000 a year. $250,000 a year. >> $250,000 a year. >> $250,000 a year. >> that was then, this is now. >> if your ticket is elected, who will pay more in taxes who will pay less. we are starting with vice president biden. >> the middle class will pay less and people making a million dollars or more will be done to contribute slightly more.

>> we can't afford $800 billion going to people making a minimum of a million dollars. neil: wait a minute. the quarter of a million dollar threshold now turning into a million. what is exactly going on there? the same people are going to get gouged or is he marketing it as going after the milon and over crowd. what do yothink? >> we don't know. let's not forget that already, about a dozen times, the obama administration has raised taxes on people making less than $250,000 per year. let's also remember that joe biden is a loose cannon. it looked like he had tourette's in the debate last night. so we have no idea whether biden was signaling someehing or whether he was, you know, if he was in his own private land. but we do know that some democrats on capitol hill have

indicated that they don't want the class warfare tactics to kick in at 200 or 250,000, so maybe, just maybe, by then wa given instructions and caried them outut and that sent a signl in the debate last night. my guess is that he was just being typical, loose cannon, lunchbucket joke. neil: here is where i disagree with you, even though you know what you're talking about and i don't. i think there was a strategy that is. if you look back at the records here, barack obama has avoided taking a number with the so-called rich. he always says millionaires and millionaires and billionaires. it's been a long time since you mention the 250,000-dollar thing. along comes joe biden to say a million dollars. i still think, bythe way, they are going after the 250,000 and over crowd. but maybe they are recalibrating mess. maybe they are setting the stage if they were to get reelected,

and that could be a big if these daysmaking that they're jumping point from this great train wreck. what do you think? >> as a prediction come i can't really rgue with that. let's say that obama wins the white house again and republicans hold on to the house of epresentatives. well, they are both going to say that we won. we don't have to give in. so maybe moving from 200,000 as a threshold for the class warfare tactics to 1 million could be a way to give obama a symbolic victory, albeit a symbolic one that at the same time allows republicans to claim that they got something out of the deal. who really knows? but keep in mind, when bill clinton first put in the millionaires surtax back in 1993, it wasn't a millionaire. it was right about the $350,000.11 level. we have always had this very strange definition of manipulation in washington. >> we have. the int i raised with dick

durbin last night, on whether there was a shift goin on there, i want you to react to that. >> the position of the administration, which biden said, turning to paul ryan, why won't you at least let us preserve the middle class tax cuts for ose making under $250,000. >> is a million in new strategy now? >> there are several different illustrations. >> is not talking about the change of administration? >> i don't think so. >> im not great at reading poker faces or the lack thereof. but maybe there is nothing sinister going on, but obviously they are not reading from the same choir book. >> again, i actually think that durbin said it right. joe biden could have simply have been using illustration as part of his debate and didn't necessarily, especially if you are into the parsing of words, there was nothing in what biden said that committed the white house to a new approach.

he was just using an example. this administration still is dedicated to class warfare taxation, it is simply a question of where those higher tax rates kick in, how fast do we go down this path, driving up businesses and jobs. i think it's a bad idea. wherever you pick higher tax rates, the problem in america is that government is too big and that was what was very frustrating about the debate. that moderator never ask a question how big should government be? is it too big now? should we worry about america becoming another welfare state like greece or france or spain or italy? it was a very frustratg debate for those of us in the country who worry about the size and scope of the federal government. neil: it wasn't even an issue last night. dan mitchell, thank you so much. well, in 99-cent store on rodeo ive. enough said. enough said [ male announcer ] this is the age of knowing what you're made of.

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neil: all right, here's what you need to know about how dicey this recovery is. in 99-cent store may be coming to beverly hills. it is true. from the land of lost jobs, now rodeo drive is going discount. will this eer be the same? who should know better than someone else who is from there. from beverly hills. our very own liz claman. her blood is so blue, have to wonderwhether lives is seeing red. >> i am with wearing red. >> no, no, that would be it. they were the down and out flks in beverly hills.

>> all i can tell you is if i hear one person, i've heard of thousands they that is redline. everyone loves a 99-cent store, but they have to, can you imagine, who knows where it's going to be. listen, i wouldn't think this would be good. [talking over each other] >> what happens the full image of rodeo drive in beverly hills? not that there's anything wrong with it. >> what could be worse? what could be worse. that is every -- it is everywhere. there are a lot of storefron that are empty right now.

neil: no way that your old family neighbors are welcoming and 99 cents store. >> you are so wrong. i called. [talking over each other] neil: the average -- >> here is why, the average is told of her own. eric schiffer, the ceo knows th i like them. he is the one that says there is a market for this. how do you think people got will wealthy? by being smart with their money. and it is a popular sport. will venture their. neil: why hasn't one been there already? [laughter] neil: is there a wal-mart in beverly hills? okay thank you. >> there used to be something called a bargain circuit, and everybody used to go from beverly hills to bargain circuit. it was the original 99 cents store. people love a deal. i don't care where you're from,.

neil: were you born in inglewood >> yes, i was. to what kind of stories the cell? >> i like to wash my hair with evian water. [laughter] neil: my father was the son of penniless immigrants from russia. my mother, her relatives were penniless immigrants from romania. it's the great american story. but now they are going back to the 99 cents? >> why not? whoever left it. we could probably see back in the day, tre was a place where debbie reynolds walked in with the sunglasses on occasion. come on. neil: a domino's pizza? chicken wings?

>> no food chains. you have to go just outside of beverly hills. >> come on. this is so major. neil: i think you're trying to accept this, but i think you're having issues with it. >> i will be first in line. >> this is like $7 elsewhere. ne: it's 99 cents they are? >> just. [laughter] neil: liz claman,. >> happy to help out. neil: great to have you. >> i predict it will be a very popular store. save some money and spend the rest on the gucci purse. neil: when we come back, the nobel prize for democrats, they

will single-handedly bring the continent to its kees. they didn't quite frame it that way in scotland. i love to eat. iove hanging out with my friends. i have a great fit with my dentures. i love kiwis. i've always had that issue with the seeds getting under my denture. super poligrip free -- it creates a seal of the dentures in my mouth. even well-fitting dentures let in food particles. super poligrip is zinc free. with just a few dabs, it's clinically proven to seal out more food particles so you're more comfortable and nfident while you eat. super poligrip free made the kiwi an enjoyable experience. [ charlie ] try zinc free super poligrip.

hahahaha! hooohooo, hahaha! this is awesome! folks who save hundreds of dollars itching to geico sure are happy. i'd say happier than a slinky on an escalator. get happy. get geico. melons!!! oh yeah!! well that was uncalled for. folks who save hundreds of dollars switching to geico sure are happy. how happy, ronny? happier than gallagher at a farmers' market. get happy. get geico.

oh! blue! time! time out. i touched it. i touched the ball before it went out, coach. come on, alex, the ref did not call that! you gotta be kidding me, alex! it's the championship game! talk to him, coach.

i touched, it's their ball. don't foul them when they inbound. team on 'three.' one, two, three. nice going, alex. sorry coach. alex! good call. the. neil: this is a good one. did you hear the one about the eu winning a nobel peace prize? it's actually not a joke, it is true. to the folks whose policies have triggered riots. what is not? me getting a peace prize for my successful anti-obesity campaign? we have melissa francis and she is one of the sweetest people. alyssa, what the heck?

>> they had apress conference afterwards and someo had the nerve to ask ak the chairman, wasn't it a cheerleader for the european uon? and he was upset by this comment. he was shocked. >> are they looking at the same video that we are looking at? >> wondering if they think of the $1.2 million prize is going to solve the debt crisis. maybe that's what it's all about to it is amazing. timing is everything. let's just say, the timing for this is off, is not? >> well, i'm not sure of the criteria, but remember, the nobel peace prize also had yasir arafat in 1990 for winning the nobel peace prize and teddy rooselt after he had already decided to invade colombia. they don't have exactly a great track record of criteria for the nobel peace pprize. >> i want melissa to react to this.

the eu president -- on what he had to say about his. >> you what's strange about that guy come, he's not friends but he sounds french. but he's okay with it. >> in the next year he could get in, i don't know. >> at this point, it seems possible. i just wonder if maybe the committee wanted to keep the money and they thought they gave it to the european union, nobody would get upset over it. >> i didn't know that we attached a standard for providing an example, but that

maybe that was his strategy. >> you know, it is hard to figure. unless, well, it could be comedy. maybe it was for saturday nnght live -- i don't know. >> i was waiting to hear him say he was kidding. let's say that they are very serious about this, and clearly, they were and are serious about this. >> they are, we checked this out >> whadoes that mean about where we go? obviously they are standing by at, even thougit has been proven that the united states and europe don't cut it. then what? >> if you look at the countries, the nobel peace prize from the scandinavian countries, they may want to give thethe nobel peace prize, but they certainly aren't joining the eu, it turns

out it was a very good decision. this is something that was done -- they gave him one based on what they hope that they will do. that is a politically motivated prize right now. the problem is the eu is disintegrating and it will probably become to eu is. i'm not sure who gets to keep his private long-term. >> in all seriousness, they have said that the eu has had a stabilizing effect on the continent. i don't know how you c look at pictures of greek protesters dressed as nazis to greet and the love to win of angela merkel. i'm not sure how that is a nobel peace prize committee and what they are thinking of. neil: go ahead, john.

>> the frederick is something you would hear years ago. you have some of them that are very upset, bringing up not see references. it is just terrible what is going on. you actually have germans i know trying to cut taxes because greece won't do it themselves. it is being exacerbated by now, i mean, this is something that is not sustainable. >> did they run out of other people? who got second andhird-place? that's what i want to know. neil: john, i hear the u.n. mountain climbing in africa. it had something to do with me. could you explain? >> of course, raising money for a great group of kids that i work wth. what a better inspiration.

at 57 total miles. you carried your picture with me, neil, you were at the top of africa with me. >> wow. neil: where is my prize and where is his? neil: jaundiced squirt some point. >> your picture was a lot less cold than i was on that mountain. because i was absolutely freezing. >> well, congratulations to you. thank you, john, thank and thank you, melissa. in the meantime, remember the president? well, last night, joe biden. think of this economy. is nothing to smile or laugh about

i mean, yeah, you could say it's an unusual hobby. and yeah, i've had people laugh at me, but ion't care. i just love collecting air. people always say the world is, like, 80% water, right? that means the world has to be like 90% air. that's just science. think it's weird to collect air? you wouldn't think so if you saw what your lungs collect every time you breathe. people c make fun of me all they want, but i choose to see the glass half-full. of air. protect your health with life-saving air quality updates from the american lung association. get our free "state of the air" app at lung.org.

neil: by now you have heard all the talk about the debate. joe biden smirking and laughing his way through it. wipe that smirk off your face, joe. there is nothing funny about what is going on with this recovery in the deep end that government. john, you say there are serious problems here. laughing about them, smirking about them doesn't help them either. >> no, thank you for having me back by the way, neil, and absolutely, this is not the time for anyby to be smiling frankly, if you look into the eyes of the average person across the nation, they are doing anything but smiling. and with good reason you know, they are uncertain, they are frankly scared about what tomorrow will ring. we get taxed onegulation upon mandate, upon lawsuit, they have good reason to be doing anything but smiling.

they would like to, but they are terrified. >> maybe you could explain to me between -- for lack of a better word, average americans and their basses. average americandepending on the survey are feeling a tad more confident. not a lot more, but a little bit. theibosses are not feeling that way so much. i always worry about that. because if i'm happy and my boss is not happy, then i'm not too happy. >> yes, that uncertainty continues to ripple out. we have done surveys. our weekly survey in september shows that optimism among small business owners continues to plummet. what we are finding the most is that. or just not ready to make hiring decisions. and they are looking at ways to scale back. that ripples out to the employee and consumer and it's just not a happy situation. so there may be some people in small areas with hope, but our

records are showing anything but that. they are just scared and frighted and uncertain. neil: so what would it take to leave their fears? >> first of all, we need to stop the madness. one of the things i have said before on this show is that our elected officials need to listen to the people they were elected to represent. we are just not finding that in california or across the nation. we have to make sure that the tax rates and taxes are lower. make se that regulations are reduced, and make sure that we are giving people some hop. just remember, small businesses on average pay about 37% more than regulatory compliance. about 18% more for health insurance. neil: to address this once and for all. when the vice president says hiking taxes at the end will affect 3% of businesses, there is another number that you rely upon as to how that translates. explain. >> well, i think what we find

out is that any increase like that is actually going to hurt some. let's remember that small businesses create about 99.7% of all jobs. frankly, they are most of the businesses across the nation. >> in that top percentage, two or 3%, it is not the half of all hires, so we forget that. >> that is absolutely true. the other thinghat folks in washington dc and here in california, governor brown in the legislature, tax rates and how they affect small businesses. the governor is trying to push a 50 billion-dollar tax increase on the november ballot. t's call it what it is. a mean streak tax on mom-and-pop. the $250,000 -- mo of our folks file s individuals and not corporations. that will be hitting the small business owner. frankly, ultimately, the employee.

neil: great stuff. john, thank you very much. all right, lou says banks are lending? you always hear that no one is winning. we found two smaller banks that might

neil:we found two banks that didn't, and they are small and they are doing just fine. they are lending the spine. so there is the split between what we are told in the mainstream media about all things currently being evil. because the apparently did not go down the full letter here.

gentleman who have both seen a pickup in lending and have been leading throughout what appeared to be a crisis because they didn't get caught up in the downdraft. bernard, to you first. explain your business and your lending standards. whether they changed at all. >> well, not really. we have a phrase that all of our employees know. we are aggressive on sales and conservative on risks. and we have operated under that philosophy from day one. so we have come on e small business site, we were the number one community bank in small business for three quarters in a row in june. we have double-digit loans are for the past were five, we have had 20% in the last two of the five years. lending is not an issue with this. neil: it is an issue with the

big banks. that correct? >> well, i think that the word bank can do a lot of scary. we are a community market in washington dc. we know our customers and we can respond to what they need. >> well, it is people that work for the government, professionals and people, and that is the main thing. neil: you are lending standards? i know that you don't have a variety of wacky products. you keep it pretty simple, right? >> that's right. >> i'm sorry, what. neil: how much down to you require for a mortgage loan? >> 20%. it's revolutionary. neil: and how about you? >> i think we have the largest mortgage company in the metro area.

we have 20 or 30 products in different documents are required for each. our mortgages are presold. we pre-sell them, we do not -- some of them we hold in the bank, but most of them are sold. >> are you both noticing more interest on the part of consumers? are you seeing that? >> yes, we are. i think the demand is there. and it always has been there, of course, in washington. >> it is like people that go there -- they understand it's a bulletproof city. we are seeing the first, you know, the beginnings of a turnaround. >> we see that. in northern virginia, there is a good market, but you have to have the best people. we do believe that we have the best people. we have the best people in the market. also, it is the small towns away

from washington. those banks are being killed. so that is what worries me. as a banker, to see these banks, one by one fail, even though a lot of people think that they are being bailed out by the government, they are actually not being bailed out by the government. [tking over each other] the fdic picsof that. and kurt and i pay for that. >> were marred just made a great point. my insurance costs have tripled. i have been penalized. >> what it does is not only enable us to serve our customers, it is absolutely terrible. neil: okay, gentlemen, thank you both very much. very hopeful.

i think everyone is thinking big and maybe you should just think small. coming up next, what happens when his opponent does not just a? the phenomenon of impressions of debate bob... oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs.

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